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Microsoft's Xbox Division Undergoes Major Restructuring, Plans Next-Gen 'Project Helix' Console

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Xbox in Flux: New Leadership, Lower Prices, and a $1,000 Console

Under new CEO Asha Sharma, Microsoft's gaming division is undergoing sweeping changes. From a brand reset back to "Xbox" to a next-generation console codenamed Project Helix, the strategy is being redefined around daily active players and a more accessible Game Pass.

"We are Xbox" — The division has officially rebranded from "Microsoft Gaming" back to "Xbox," introducing a new logo and slogan.

Leadership Transition and Rebranding

Asha Sharma became the CEO of Microsoft's gaming division in February 2025, succeeding the retiring Phil Spencer. Sarah Bond, former Xbox President, also departed. Matt Booty was promoted to Chief Content Officer.

Shortly after her appointment, Sharma announced the division would be renamed from "Microsoft Gaming" back to "Xbox" — a name originally changed in January 2022 following the Activision Blizzard acquisition. A new logo and the slogan "We are Xbox" have been introduced as part of a "return of Xbox" initiative.

Sharma has appointed several new leaders from Microsoft's CoreAI division, including Jared Palmer (VP of Engineering), Tim Allen (Design Lead), Jonathan McKay (Growth), and Evan Chaki (Forward-Deployed Engineering). David Schloss also joined from Instacart to lead subscription and cloud operations.

Two long-tenured executives departed: Kevin Gammill (VP of User Experience) and Roanne Sones (VP of Devices and Ecosystem), with Sones remaining as an advisor.

Game Pass Pricing and Strategy

Xbox has reduced the price of several Game Pass tiers, following internal communication from Sharma that the service was "too expensive for players."

  • Xbox Game Pass Ultimate: Decreased from $29.99 to $22.99 per month.
  • PC Game Pass: Decreased from $16.49 to $13.99 per month.

These changes do not fully reverse a previous price increase, but signal a shift toward affordability.

In conjunction with the price adjustments, new Call of Duty titles will no longer be available on Game Pass on their day of release. These titles will be added to the service one year after their initial launch.

Reports indicate a potential new subscription tier, codenamed "Trion," is under consideration that would include only games from Microsoft's own studios.

Project Helix: The Next-Generation Console

Microsoft has confirmed the development of a new console, codenamed Project Helix. The device is described as a high-performance hybrid machine that will support both Xbox console games and PC games through a Windows-based interface.

Hardware and Specifications

  • Custom AMD system-on-a-chip (SoC) with leaked specs suggesting AMD's RDNA5 GPU architecture and Zen 6 CPU cores.
  • Includes a Neural Processing Unit (NPU) to support AI-powered features.
  • Reports claim 32 GB or more of RAM and a performance level comparable to high-end gaming PCs.
  • Utilizes AMD's FSR Diamond technology for upscaling, frame generation, and machine learning.

Features and Strategy

  • Designed to function as a Windows 11 PC with a TV-focused interface, allowing users to install third-party PC gaming stores such as Steam, Epic Games, and GOG.
  • Microsoft has stated that Project Helix will be available as a first-party Xbox console, refuting rumors that it would be exclusively produced by third-party OEMs. However, reports suggest third-party manufacturers may also produce machines based on the Helix chip.
  • Alpha developer kits are expected to ship to game studios in 2027. A public launch has not been confirmed but is widely anticipated in 2027 or later.

Pricing and Challenges

Reports estimate the console could cost over $1,000, citing the high cost of components and ongoing global memory shortages.

Xbox VP Asha Sharma has stated that memory shortages will impact the pricing and availability of Project Helix, but has not provided a specific launch timeline.

Financial Performance and Market Context

Microsoft's gaming business has experienced a period of decline. In its fiscal Q3:

  • Xbox hardware revenue fell 33% year-over-year.
  • Content and services revenue (including Game Pass) declined 5%.
  • Over a nine-month period, gaming revenue dropped by $1.12 billion.

Overall, Microsoft reported revenue of $82.9 billion for the quarter, driven largely by its cloud and AI businesses, which grew significantly.

In the same period, Xbox was outsold by competing consoles from Sony and Nintendo. The company's new "north star" for measuring success is daily active players, with priorities placed on hardware, content, experience, and services.

Exclusivity and Game Portfolio

Under Sharma, Microsoft is reevaluating its approach to game exclusivity and release timing. The company has released some first-party titles on competing platforms like PlayStation and Nintendo Switch, a move that has generated discussion among fans.

Chief Content Officer Matt Booty has stated that Xbox's studio system is "first-party" and not designed to function solely as a publisher, but that a re-examination of operations is underway.

Marketing and Brand Reset

Sharma personally discontinued the "This is an Xbox" marketing campaign, which had aimed to broaden the definition of Xbox to include any device capable of playing Xbox games.

A Microsoft spokesperson stated that Sharma is "personally leading a reset of how we show up as a brand."